Why Portugal Isn’t as Cheap as People Say
I get it—Portugal is supposed to be a budget travel dream. That’s what every blog, influencer, and “digital nomad” will tell you. Cheap food, cheap wine, beautiful beaches, and historic cities, all for a fraction of what you’d pay in France or Spain.
That was true ten years ago. Now? If you’re not careful, Portugal can drain your wallet just as fast as any other Western European country—especially if you stick to the usual tourist trail. I learned that the hard way.
The Moment I Realized Portugal Wasn’t That Cheap
The first time I landed in Lisbon, I expected an affordable getaway. Within 24 hours, I had already burned through more money than I did in Madrid. Here’s how:
- €10 for a single cocktail in a touristy Bairro Alto bar. (Rookie mistake.)
- €4 for a pastel de nata near Belém, when I later found them for €1 at a local bakery.
- €20 for a basic dinner in Alfama—just because the place had a nice Fado singer.
- €30 for a 20-minute taxi ride because I didn’t know Bolt was cheaper.
It quickly became clear: Portugal is only cheap if you know where to go. The moment you step into a tourist-heavy area, the prices triple. And with Lisbon, Porto, and the Algarve becoming international hotspots, it’s easy to get scammed by inflated prices, hidden fees, and tourist traps disguised as “authentic experiences.”
But here’s the good news: there are still cheap places to go in Portugal—you just have to avoid the obvious spots. If you want the real deal (local prices, budget-friendly stays, and actual Portuguese culture), you need to look beyond Lisbon and the Algarve.
That’s exactly what we’re going to do. Let’s break down the real cost of traveling in Portugal so you don’t fall into the same traps I did.
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What Things Really Cost in Portugal
Portugal still carries a reputation as one of Europe’s best budget destinations, but if you step into Lisbon, Porto, or any tourist-heavy part of the Algarve, you’ll start questioning that.
I realized this firsthand on my second trip to Portugal. The first time I visited, back in 2016, I could get a decent meal for under €5, book an Airbnb for €30 a night, and sip on a beer that cost less than a bottle of water. But when I returned recently, it felt like I had landed in an entirely different country—one where a simple dinner could cost €20, accommodation had nearly doubled, and tourists were everywhere, unknowingly paying inflated prices while still believing Portugal was a “cheap” getaway.
If you don’t know where to go, Portugal will drain your budget just as fast as Spain or France. But if you do your homework, you can still travel affordably. Here’s what you actually need to know about costs.
How Much Do You Need Per Day?
Your budget depends on where you go. I tested both ends of the spectrum—overpaying in tourist-heavy spots and living cheaply in lesser-known towns. Here’s what I found:
In Lisbon and Porto, expect to spend at least €70–€100 per day if you’re staying in central areas, eating at mid-range restaurants, and visiting popular attractions. Meanwhile, in smaller towns like Coimbra, Évora, or Viana do Castelo, I lived comfortably on €35–€50 per day without sacrificing quality.
The difference was massive. A glass of wine that cost me €6 in Lisbon was €1.50 in a small-town tasca. A €25 meal in Porto could be found for €8 in the countryside, often with better food and more generous portions.
So yes, Portugal can be cheap. But not if you blindly follow influencer recommendations or stick to the same overpriced hotspots everyone else goes to.
Hidden Costs That Will Catch You Off Guard
Taxis: The Easiest Way to Get Ripped Off
I learned this lesson the hard way in Lisbon. I arrived late at night and, instead of calling a Bolt, I jumped into the first taxi outside the airport. Big mistake.
By the time I got to my Airbnb, the driver demanded €30 for a 15-minute ride. When I questioned it, he shrugged and mumbled something about "night rates." I later found out the real price should have been half that.
Taxis in Portugal are notorious for overcharging tourists. Some drivers “forget” to turn on the meter, while others take deliberately longer routes. In the Algarve, prices double during high season because they know tourists will pay.
The fix? Always use Bolt—Portugal’s Uber alternative—which costs half the price and ensures you don’t get scammed. If you must take a taxi, ask for the price in advance or make sure the meter is running.
The Restaurant “Couverts” Trick
I sat down at a charming restaurant in Porto, and before I even ordered, the waiter placed a basket of bread, a small dish of olives, and some cheese on the table. Looked like a complimentary appetizer.
Wrong.
By the time the bill arrived, that little plate of bread and olives had added €7 to my total. In some places, I’ve seen this go as high as €10.
In Portugal, this is called a "couvert"—a sneaky little extra that isn’t free unless you explicitly refuse it. If you eat it, they’ll charge you. If you don’t touch it, they’ll take it away. But if you’re not aware of this trick, you’ll pay for something you didn’t even order.
The lesson? Never assume anything on the table is free. If you don’t want to pay for it, just ignore it.
Sintra: A Stunning Place That’s Overpriced as Hell
Sintra is one of Portugal’s most beautiful towns, with fairytale castles, misty forests, and dramatic views. But the moment you step off the train, you’ll feel like you’ve walked into a theme park designed to empty your wallet.
Entry fees for the main palaces range from €12 to €20 each. Want to visit two or three? That’s already €40 gone before lunch. Speaking of lunch—good luck finding a meal under €20 in Sintra’s tourist center. Even a basic espresso will cost you €5 if you’re not careful.
I love Sintra, but it’s a place that will drain your budget fast.
How to visit Sintra without going broke?
- Take the train from Lisbon (€2 instead of a €30 taxi).
- Visit only one or two palaces—Pena Palace looks great in photos, but it’s overcrowded and overpriced. Quinta da Regaleira is a better deal.
- Pack snacks and bring your own water—you’ll thank me when you see the prices.
The Airport Price Trap
Portugal’s airports are another budget-killer. The moment you step inside, prices triple.
- A bottle of water that costs €1 at a supermarket? €6 at the airport.
- A simple sandwich? €10, minimum.
- Duty-free “bargains” that aren’t actually cheaper than buying from a local grocery store.
I once paid €4 for a tiny espresso at Lisbon Airport because I didn’t plan ahead. Never again.
If you want to save money, buy food and drinks before heading to the airport. Bring an empty water bottle and refill it after security. Portugal’s tap water is clean—there’s no reason to pay six times the real price.
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The Best Cheap Places To Go in Portugal (That Aren’t Overrun by Tourists)
If you stick to Lisbon, Porto, or the Algarve, expect to pay tourist prices for everything—from accommodation to food to basic transportation. But once you step outside those hotspots, Portugal still offers genuinely affordable destinations where you can experience real culture, eat amazing food for pocket change, and avoid the overpriced chaos of tourist traps.
I spent weeks traveling through Portugal, testing out cities and small towns to see which ones actually deliver on affordability. Here are the best places to visit if you want an authentic experience without overpaying.
Coimbra – A Cheaper, Less Touristy Alternative to Lisbon
The first time I visited Coimbra, I realized something: this is what Lisbon used to feel like before mass tourism took over.
Coimbra, Portugal’s historic university city, is packed with cobbled streets, medieval architecture, and riverside charm—but without the crowds or inflated prices of Lisbon. It’s one of the best places in Portugal for budget travelers, and here’s why:
Why It’s Cheap:
- Accommodation is significantly cheaper than Lisbon—I found private Airbnbs for €35–€50 per night, while Lisbon’s were over €100.
- Local restaurants still charge local prices—a full meal (soup, main, and drink) for €7–€10 is still possible here.
- No overpriced tourist fees—most attractions cost €5–€10 max, unlike Sintra’s €15–€20 per site.
What to Do in Coimbra Without Spending Much:
- Walk through the University of Coimbra (one of the oldest in Europe) and see its stunning library—entry is €5 instead of Lisbon’s €20+ museums.
- Climb up to the Santa Clara-a-Velha Monastery for an insane panoramic view of the city—for free.
- Stroll along the Mondego River and watch the sunset—also free.
Reality Check: Why Some People Skip It
- It’s quieter at night—if you’re looking for Lisbon’s party scene, this isn’t the place.
- Hilly streets—like Lisbon, but fewer tourists to block your way.
If you want Lisbon’s charm without Lisbon’s prices, Coimbra is the answer.
Évora – A Stunning Medieval City That’s Still Affordable
Évora is one of Portugal’s best-preserved medieval cities, and somehow, it’s still ridiculously affordable. It’s a UNESCO World Heritage Site packed with Roman ruins, Gothic cathedrals, and eerie bone chapels—but without Lisbon’s tourist pricing.
Why It’s Cheap:
- You can stay in the city center for €40–€60 per night, which is half of what you’d pay in Porto or Lisbon.
- Meals at traditional tascas cost €8–€12, even for fresh seafood and hearty Alentejo dishes.
- Entry to most historical sites is under €5, and many are free.
Best Things to Do on a Budget:
- Visit the eerie Chapel of Bones (€5)—yes, it’s decorated with actual human bones.
- Explore the Roman Temple of Évora—it’s over 2,000 years old and completely free to see.
- Drink Alentejo wine at a tiny local tasca—a glass of excellent local wine costs €1.50–€3.
Reality Check: Why Some People Skip It
- Not much nightlife—this is a slow-paced, historical city, not a party spot.
- Hot as hell in summer—temps hit 40°C (104°F) in July and August, so avoid peak season.
Évora is perfect for culture lovers and budget travelers, and it’s cheaper than Lisbon in every way.
Guimarães – Portugal’s Birthplace, Without the Price Tag
Guimarães is where Portugal was born—literally. It’s the site of the country’s first capital and home to one of the best-preserved medieval centers in Europe. Unlike Lisbon, where history is mixed with overpriced tourist cafés, Guimarães offers authentic charm without inflated costs.
Why It’s Cheap:
- A budget-friendly hotel in the city center costs €30–€50 per night.
- A meal at a family-run restaurant (grilled fish, rice, salad, and wine) costs €7–€10.
- Public transport is cheap and efficient, unlike Lisbon’s overpriced taxis.
What to Do for Cheap:
- Explore the medieval Guimarães Castle (€3)—or just admire it from outside for free.
- Wander through the historic city center, full of stunning squares, Gothic buildings, and old-world charm.
- Take the cable car (€7 round trip) to Penha Mountain for insane panoramic views.
Reality Check: Why Some People Skip It
- It’s small—you can see the whole city in a day, so it’s better as a stopover or weekend trip.
- Not as famous as Porto or Lisbon, so fewer “Instagrammable” spots—but that’s exactly why it’s great.
Guimarães is one of Portugal’s most underrated gems, and it’s far cheaper than the big cities.
Viana do Castelo – A Coastal Escape Without the Algarve Prices
Everyone flocks to the Algarve for beaches, but Viana do Castelo gives you stunning coastlines, fresh seafood, and historical charm—without the insane summer price hikes. Located in northern Portugal, it’s way cheaper than anything in the south.
Why It’s Cheap:
- Beachfront guesthouses for €40–€60 per night, while Algarve hotels can hit €200+.
- Amazing seafood restaurants where you can get a full meal for €10.
- No “tourist tax” on activities—hiking, surfing, and exploring are all free or dirt cheap.
Best Budget-Friendly Activities:
- Hike up to the Basilica of Santa Luzia for one of Portugal’s best coastal views (free).
- Hit up Cabedelo Beach—one of the best surfing spots, and completely free.
- Try fresh seafood at a local tasca—grilled fish for €7–€10, while the Algarve charges double.
Reality Check: Why Some People Skip It
- Colder than the Algarve—the Atlantic is rougher and windier up north, so beach weather isn’t guaranteed.
- Fewer international tourists—great for an authentic experience, but English isn’t spoken everywhere.
If you want beautiful beaches without tourist prices, this is the place to go.
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Overrated & Overpriced Places You Should Skip
Portugal can be a budget-friendly destination—if you know where to go. But if you blindly follow influencer guides and Instagram hotspots, expect to overpay for a mediocre experience. Some places are so touristy, so overpriced, and so overcrowded that they’ve lost what made them special in the first place.
Here’s where you’ll burn through your budget for little return.
Lisbon’s Alfama District – Beautiful, But a Tourist Trap
I get it—Alfama is the postcard-perfect side of Lisbon. Cobbled streets, tiled houses, Fado music drifting through the alleys. But the problem? It’s completely overrun by tourists, and prices have skyrocketed to match.
Why It’s Overrated:
- Overpriced restaurants—any place with Fado music will charge you €25+ for a mediocre meal.
- Crowded streets—it’s nearly impossible to walk in peak season without getting stuck behind a slow-moving tour group.
- Airbnbs have driven out locals—you’re not experiencing “real Lisbon” here.
Better Alternative: Coimbra or Porto’s Ribeira District
Both offer stunning old-world charm without the tourist tax. In Coimbra, you’ll find cheaper food, less crowds, and more authentic experiences.
Cascais – An Expensive Beach Town That’s Not Worth It
Cascais is often sold as Lisbon’s best beach escape. The problem? It’s not that special, and it’s overpriced for what you get.
Why It’s Overrated:
- Accommodation is ridiculously expensive—hotels start at €100+ per night in peak season.
- The beaches aren’t even that good—small, crowded, and packed with sunbeds you have to rent.
- Food prices are double what you’d pay elsewhere—even basic seafood dishes cost €25+.
Better Alternative: Viana do Castelo
Same coastal charm, better beaches, half the price. Plus, it’s not packed with day-trippers from Lisbon.
Sintra – Magical in Photos, Miserable in Reality
I’ll be honest—Sintra is stunning. The castles, the misty forests, the palaces straight out of a fairy tale. But visiting? It’s an expensive, overcrowded headache.
Why It’s Overrated:
- Ticket prices are insane—Pena Palace alone is €20, and you’ll need to pay for at least two or three sites to see anything worthwhile.
- Overcrowded like Disneyland—every viewpoint is packed with hundreds of tourists fighting for the same photo.
- Food is overpriced garbage—expect to pay €5 for a tiny espresso or €15+ for a basic sandwich.
Better Alternative: Tomar
Tomar has an equally impressive castle (Convento de Cristo), fewer crowds, and it’s way cheaper. Entrance? €6 instead of Sintra’s €20+.
Most of the Algarve – A Tourist Zoo in Summer
The Algarve’s beaches look unreal in photos—golden cliffs, turquoise waters, hidden coves. But if you visit in July or August, expect one of the most overpriced, overcrowded travel experiences in Portugal.
Why It’s Overrated:
- Accommodation prices double in summer—hotels that cost €50 in winter jump to €150+.
- You’ll barely find space on the beaches—Praia da Marinha and Benagil Cave? Forget it.
- Restaurants charge tourist prices—a simple grilled fish plate can cost €25 or more.
Better Alternative: Costa Vicentina
This rugged, lesser-known coastline has wild beaches, fewer tourists, and real local prices. Accommodation is also way cheaper than Lagos or Albufeira.
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How to Travel Portugal Cheaply & Avoid Getting Scammed
Portugal can still be cheap—if you know what you’re doing. But if you don’t? Expect to bleed money on overpriced restaurants, unnecessary taxis, and tourist trap tours.
I’ve seen it happen. I’ve made the mistakes myself. And after traveling across the country—from Lisbon’s overpriced tourist core to small towns where a meal costs less than a coffee in Paris—I’ve figured out exactly how to experience Portugal without overpaying for nonsense.
Here’s how to make your money go further without feeling like a clueless tourist.
1. Never Take a Taxi—They’re a Tourist Scam
The first time I landed in Lisbon, I did what most first-time visitors do—I hopped in a taxi at the airport, exhausted and just wanting to get to my Airbnb. Big mistake.
Fifteen minutes later, I was staring at a €30 fare for a ride that should have cost me half that. I later found out the driver took the long way around. Classic move.
Taxis in Portugal are notorious for overcharging tourists. Some drivers refuse to use the meter, others add "extra fees" out of nowhere, and in tourist-heavy areas, they double their prices just because they can.
What to Do Instead:
- Use Bolt, NOT taxis. It’s like Uber but cheaper, and the prices are set—no scams.
- If you must take a taxi, agree on the price before getting in or demand the meter be turned on.
- At the airport, take the metro. It costs €1.80 instead of €20+ for a taxi.
2. If a Restaurant Has an English Menu Outside, Walk Away
I learned this lesson the hard way in Alfama. I was starving, saw a cozy little restaurant with a big laminated menu in English, and thought, "This looks nice."
The fish dish I ordered was fine—nothing special—but when the bill came, I nearly choked on my own stupidity. €25 for a meal that should have cost €10.
Restaurants in tourist areas mark up their prices ridiculously—especially if they know their customers aren’t price-conscious. The moment you see a large menu in English sitting outside, it means one thing: inflated tourist prices.
How to Eat Well Without Overpaying:
- Go where the locals go. If a place is filled with tourists, prices will match.
- Look for the "Prato do Dia" (Dish of the Day). Many local places offer a full meal for €7–€10, including wine.
- Avoid restaurants near major landmarks. Walk two streets away, and prices drop instantly.
3. Public Transport is Dirt Cheap—Use It
Portugal’s public transport system is cheap, efficient, and way better than overpaying for taxis or rental cars. But too many tourists ignore it and end up wasting money.
I once saw a couple pay €40 for a taxi from Lisbon to Sintra. Meanwhile, I took the train for €2.30 and arrived at the same time. Guess who felt like an idiot?
How to Save Money on Transport:
- In Lisbon, get a Viva Viagem card. It costs €0.50, and metro rides are €1.80 instead of €3+ for single tickets.
- Use trains for city-to-city travel. A Lisbon to Porto ticket is €10–€25 if booked in advance, cheaper than renting a car.
- Don’t rent a car unless you’re exploring the countryside. In cities, it’s pointless and expensive—parking alone can cost €20+ per day.
4. Guided Tours Are a Waste of Money—Do It Yourself
A classic Portugal tourist trap? Overpriced guided tours to places you can visit on your own.
I once overheard a group of tourists in Lisbon talking about a Sintra day tour they paid €70 for. Seventy euros! For a trip that could have cost them €5 in train tickets and €10 in palace entry fees.
Most of Portugal’s best destinations are easy and cheap to visit on your own. But tour companies bank on people being lazy or uninformed.
How to Explore Portugal Cheaply:
- Skip Sintra tours—just take the train. It’s €2.30 each way instead of a €50+ group tour.
- Join a free walking tour instead of paying €30+ for a guide. Lisbon, Porto, and Coimbra all have tip-based walking tours.
- Use local buses and trains for day trips. Cascais, Évora, and Tomar are all cheap and easy to reach.
5. Restaurant Scams & Hidden Fees to Watch For
Portuguese restaurants have a few sneaky ways to charge you more than you expected. If you’re not careful, your bill will be way higher than it should be.
The Worst Hidden Fees:
- Couverts (bread, olives, cheese on the table) – Looks free? It’s not. If you touch it, they’ll charge you €3–€6 per person.
- Tourist pricing on menus – Some places charge higher prices if you order in English instead of pointing at the Portuguese menu.
- Bottled water trick – If they bring you bottled water without asking, expect to pay €2–€3 for it.
How to Avoid Overpaying:
- Ignore the bread and olives unless you want to pay. If you don’t touch them, they can’t charge you.
- Ask for "água da torneira" (tap water) instead of bottled—it’s free and totally safe.
- Always check the bill before paying. Some restaurants sneak in extra charges.
6. Travel in the Off-Season & Save 50% or More
Portugal is not cheap in summer. From June to August, hotel prices double, flights are expensive, and even food prices seem higher.
I made the mistake of visiting the Algarve in August—bad move. A basic guesthouse cost me €80 per night. The same exact place? €35 in October.
When to Visit for the Best Deals:
- September to November – Perfect weather, lower prices, no crowds.
- March to May – Spring is beautiful, and hotels are much cheaper than in summer.
- Avoid July and August unless you enjoy overpaying for everything.
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Conclusion
A few years ago, Portugal was one of the cheapest destinations in Western Europe. Now? It depends entirely on how you travel.
If you stick to Lisbon, Porto, and the Algarve, expect tourist prices, overpriced meals, and accommodation costs that rival Spain or Italy. But if you step outside the overhyped hotspots, Portugal can still be affordable.